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10 hours ago.
Post: #131
(07-11-2019, 05:50 PM)Ben Wrote: Under Note 10 of the announcement, the company mentioned that it has in Nov 2019 appointed Rabobank Singapore to advise on strategic options in relation to its investment in the Primary Production business. So another shot at IPO is perhaps in the plan.

Big Grin Big Grin Big Grin  cant wait to see their IPO plan again. last round burnt $5m by the 'new' team.

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10 hours ago.
Post: #132
(08-11-2019, 05:19 PM)Squirrel Wrote: I don't really think that the primary production business is having that much of a recovery basically due to the drought situation. The drought in Australia is at historic worst. And given the countries strict bio security laws, its tough for grains to get imported. I believe there was an exception for wheat just this year, and hopefully with more exceptions that can bring down feed price.

Honestly, I have toyed around with the numbers, but at the moment this company doesn't entice me into buying. I don't really think the primary production business can attract a high valuation.

Lastly, I think they will cut dividends... They are at a historic low on cash and their 5 cents a year dividend of $29m is not sustainable. There is a need for working capital etc and I doubt a conscientious management would drive the cash pile lower.

These are my opinions and hopefully won't offend anyone...

Bought at .835 before see your post.  Undecided Undecided closed at .785 today Sad   agree with you not sustainable at all Confused

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20 minutes ago.
Post: #133
This time round I don't think it is IPO. For this round, they engaged rabobank which seems to be specialist in the field of food business M&A.

They are so desperate to do this right now instead of waiting a year or 2 for the peak of the cycle. Australian pork prices had been steadily going up and the grain prices is forecasted to be lower next year (better current weather). Perhaps lesson learnt from previous attempt so they are taking action earlier now at the start of the cycle. But this is a small pork business (compare to global giants) and exports are restricted never mind uncompetitive. So not sure if anyone outside of Australia might be interested. Locally, pork consumption is growing well due to industry marketing and Australia own demographic changes (more asians).

They are making improvements within and exploring more exports (current very small %). Australian pork export is very uncompetitive vs the major pork producers (US, EU, Bra) due to high cost. But ASF had created a value add in terms of food security that may find appeal in hi end markets like sg, hk and japan.

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